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Bitcoin price is looking to maintain support at the $44,000 USD level heading into the next month. The price of Bitcoin saw a minor dip in price over the weekend, before bouncing back above $45,000 USD. Some analysts are pointing out that more miners are selling, which has resulted in the latest dip.
While this might sound like a reason for caution, it might be bullish in the long-run. According to Glassnode, the Bitcoin Spent Output Profit Ratio (SOPR) has seen a “full reset”, meaning profit-taking might have abated and long-term investors will be looking to hold
The daily #Bitcoin Spent Output Profit Ratio (SOPR) has seen a full reset, and turned negative for the first time in five months – investors were on average moving BTC at a slight loss, indicating profit-taking has abated.
Chart: https://t.co/Nx2Ulu6AwZ pic.twitter.com/xxwE31aB5k
— glassnode (@glassnode) February 28, 2021
Decentrader co-founder Philip Swift also noted that the SOPR dip is worthwhile considering as a metric in the market’s future health. He believes that this is a possibly bullish point in the crypto market, especially in conjunction with last week’s funding rates which have historically been followed by a price hike.
As he noted:
Spent Output Profit Ratio (SOPR) has now reset (green on the chart) meaning that wallets selling are now selling at a loss. This is a strong ‘buy the dip’ signal in a bull market.
This alongside derivative fundings having reset is bullish.#Bitcoin pic.twitter.com/Ns8Ltw0Aog
— Philip Swift (@PositiveCrypto) February 28, 2021
March a bearish time for Bitcoin
Many traders, however, remain cautious about where Bitcoin might be headed this month. Historically, this time of year has had a hard time gaining and maintaining strength. Last year in March, Bitcoin saw a crash in price before gaining back its value over the year. Experts believe that this current price level of Bitcoin, between $44,000 USD and $45,000 USD remains the key level to watch.